| Comment Number: | 522418-03467 |
| Received: | 6/20/2006 7:38:00 AM |
| Organization: | Independent Jewelry Consultant of Cookie Lee Jewelry |
| Commenter: | Barbara Burkhardt |
| State: | MD |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
To Whom It May Concern, I am writing this letter because I am concerned about the proposed business opportunity rule R511993. I believe that in its present form, it could prevent me from continuing as a Independent Jewelry Consultant. I understand that part of the FTC's responsiblities is to protect the public from "unfair and deceptive acts or practices," but some of the sections in the proposed rule will make it very difficult if not impossible for me to sell Cookie Lee Jewelry. One of the most confusing and burdensome sections of the proposed rule is the seven day waiting period to enroll new Consultants. Cookie Lee Jewelry sales kits only cost $325.00 or $500.00. People buy TV's, cars and other items that cost much more then that and they do not have to wait seven-days. This waiting period gives the impression that there might be soething wrong with the plan. I also think this seven-day waiting period is unnecessary, because Cookie Lee Jewelry already has a 90% buyback policy for all products inlcluding sales kits purchased by a sales person with in the last twelve months. Under this waiting period requirements, I will need to keep very detailed records when I first speak to someone about Cookie Lee Jewelry and will then have to send in many reports to Cookie Lee Jewelry headquarters. The proposed rule also calls for the reliease of any information regarding lawsuits involving misrepresentation, or unfair or deeptive practices. It does not matter if the company was found innocent. Today, anyone or any company can be sued for almost anything. It does not make sense to me that I would have to disclose these lawsuits unless Cookie Lee Jewelry is found guilty. Otherwise, Cookie Lee Jewelry and I are put at an unfair advantage even though Cookie Lee Jewelry has done nothing wrong. Finally, the proposed rule requires the disclosure of a miminum of 10 prior purchasers nearest to the prospective purchaser. I am glad to provide references, but in this day of identity theft, I am very uncomfortable giving out the personal information of individuals (without their approval) to strangers. Also, giving away this information could damage the business relationship of the references who may be involved in other companies or businesses including those of competitors. In order to get the list of the 10 prior purchasers, I will need to send the address of the prospective purchaser to Cookie Lee Jewelry headquarters and then wait for the list. I also think the following sentence required by the proposed rule will prevent many people from wanting to sign up as a sles person "If you buy a business opportunity fromthe seller, your contact informatin can be disclosed in the future to other buyers." People are very concerned about their privacy and identity theft. They will be reluctant to share their personal information with individuals they have never met. I have been an Independent Jewelry Consultant of Cookie Lee Jewelry since Sept. 2005. I decided to do this to be able to stay at home with my small son. It is extremely hard these days to be a stay at home mom. Stay at home moms are a dying breed...kids are not being supervised...or they are in daycare for 6+ hours a day. By selling the jewelry..I make my own hours around my son. It has given me the freedom of making a little bit of money...giving me time to be with some wonderful women...make new friends..and most important STILL be there for my son. My family enjoys the extra money that I now make and depend on. I appreciate the work of the FTC to protect consumers, but I believe this proposed new rule has many unintended consequences and that there are less burdensome alternatives available in achieving its goals. Thank you for your time in considering my comments. Sincerely, Barbara Burkhardt